GBP/USD jumps to 1.4280 ahead of UK GDP

FXStreet (Mumbai) - The GBP/USD pair stages a solid comeback in the European session, tracking the recovery in oil prices, while focus remains on the UK’s Q4 prelim GDP report due for release shortly.
GBP/USD testing hourly 100-SMA

The GBP/USD pair trades 0.28% higher at fresh session highs of 1.4278, heading for a test of 1.43 handle.

Fresh bids emerged for the major near the hourly 200-SMA at 1.4244 and the prices nearly 40-pips largely driven by renewed optimism in the European equities after the oil prices recovered losses and now looks to stabilize over the last hour. Germany’s DAX gains 0.15%, while the UK’s FTSE rises 0.27% and the pan-European benchmark, the Euro Stoxx advances 0.43%.

Moreover, the GBP/USD pair climbs higher as the pound remains strongly bid on expectations that the UK economic growth is expected to have picked-up pace in the last quarter of 2015 and is seen at 0.5% from a downwardly revised 0.4% in Q3. Besides, the main highlight for the day is expected to remain the US durable goods orders data.

GBP/USD Levels to consider

The pair has an immediate resistance at 1.4300/11 (round number/ Jan 25 High), above which 1.4359/ 67 (Jan 27 & 26 High) would be tested. On the flip side, support is seen at 1.4294 (Daily pivot) below which it could extend losses to towards 1.4244 (1h 200-SMA/ 10-DMA).
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